Kasai Kogyo Co., Ltd. (7256) AI Stock Analysis

• Market Cap: ¥10.83B
• Dividend Yield: N/A
• Average Volume (3M): 725.15K
• Price to Earnings (P/E): 0.6
• Beta (1Y): 0.98
• Revenue Growth: -9.54%
• EPS Growth: 21.21%
• Country: JP
• Employees: 8,147
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 55.49
• Shares Outstanding: 39,511,726
• 10 Day Avg. Volume: 371,060
• 30 Day Avg. Volume: 725,153
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.02
• P/FCF Ratio: -0.82
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: ¥294.00 ▲(94.70% Upside)
• Action: Reiterated Date: 03/11/26
• Date: Action: Reiterated 03/11/26

The score is held down primarily by weak financial performance (declining revenue, negative profitability, high leverage, and pressured cash flow). Technicals are comparatively strong with price above major moving averages and positive MACD, while valuation appears inexpensive on P/E but may reflect distress risk and lacks dividend support.

Positive Factors

OEM supply-chain position

Kasai's role as a supplier to major domestic and international automakers creates durable demand visibility and higher switching costs. Long-term OEM relationships support multi-year program ties and recurring volume, helping stabilize revenue across vehicle cycles and model refreshes.

Long-term client contracts

Established long-term contracts reduce order volatility and enable predictable production planning and capacity utilization. This contractual revenue base supports operational leverage, smoother cash generation over multiple quarters, and better justification for targeted capex tied to OEM program lifecycles.

Asset backing / equity ratio

A relatively stable equity ratio provides an asset-backed cushion that aids creditor confidence and operational continuity during cyclical troughs. This balance-sheet stability can improve refinancing options and preserve capacity to invest in tooling and program launches when demand recovers.

Negative Factors

Declining revenue trend

Sustained revenue decline suggests lost content, weaker demand, or competitive displacement. Over several quarters this erodes scale, reduces absorption of fixed costs, and increases per-unit overhead, making it harder to regain margins and reinvest in product development or manufacturing upgrades.

Negative profitability and margin pressure

Persistent negative net and EBIT margins and falling gross margins indicate structural margin compression from cost, pricing, or mix issues. Continued unprofitability undermines free cash flow, limits R&D funding and capital spending, and weakens competitiveness for winning future OEM programs.

Weak cash generation and high leverage

Negative free cash flow growth combined with elevated leverage constrains strategic flexibility and raises refinancing risk. Poor earnings-to-cash conversion limits the firm's ability to fund capex, absorb program start-up costs, or pursue restructuring without raising costly external financing.

Kasai Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Kasai Kogyo Co., Ltd. manufactures and sells automotive interior and exterior parts, and related businesses in Japan and internationally. The company offers cabin trim products, including door trims, head lining products, sun visors, rear parcel shelf products, map lamps, and body side trims; and luggage trim products, such as luggage side trims, tonneau covers, tonneau boards, trunk rooms, floor boards, and luggage floor under boxes. It also provides noise insulation parts comprising dash and hood insulators; and other body parts consisting of engine undercovers and fender covers. The company was founded in 1912 and is headquartered in Koza, Japan.

How the Company Makes Money

Kasai Kogyo generates revenue primarily through the sale of its automotive components to major car manufacturers. The company operates a business model that includes long-term contracts with key clients, which provides a stable revenue stream. Additionally, they engage in research and development to create advanced materials and products that meet the evolving demands of the automotive sector. Their revenue is further bolstered by partnerships with automotive companies, enhancing their market presence and allowing for collaborative product development. Furthermore, Kasai Kogyo may benefit from global automotive trends such as the increasing demand for electric vehicles, allowing them to adapt their offerings and tap into new markets.

Kasai Kogyo Co., Ltd. Financial Statement Overview

Summary

Weak fundamentals: declining revenue trend, negative profitability (net and EBIT margins), high leverage (elevated debt-to-equity), and stressed cash generation with negative free cash flow growth and poor earnings-to-cash conversion.

Income Statement

Kasai Kogyo Co., Ltd. has faced declining revenue growth with a negative trend over the past year, indicating potential challenges in market demand or competitive positioning. The company has struggled with profitability, as evidenced by negative net profit margins and EBIT margins. The gross profit margin has also decreased, suggesting cost pressures or inefficiencies. Overall, the income statement reflects financial difficulties and a need for strategic improvements.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio, indicating significant leverage and potential financial risk. The return on equity is negative, reflecting ongoing losses and poor shareholder returns. However, the equity ratio remains relatively stable, suggesting some level of asset backing. The balance sheet highlights the need for improved financial management and debt reduction strategies.

Cash Flow

Kasai Kogyo Co., Ltd. has experienced negative free cash flow growth, indicating challenges in generating sufficient cash from operations. The operating cash flow to net income ratio is low, reflecting inefficiencies in converting earnings into cash. The free cash flow to net income ratio is also concerning, suggesting potential liquidity issues. Overall, the cash flow statement underscores the need for enhanced cash management and operational efficiency.

Breakdown	Mar 2025	Jun 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	218.80B	214.31B	175.47B	147.47B	152.82B
Gross Profit	20.79B	23.68B	4.71B	4.61B	4.50B
EBITDA	7.03B	12.25B	-2.28B	-9.27B	-3.99B
Net Income	-9.18B	-313.00M	-13.13B	-19.03B	-17.08B
Balance Sheet
Total Assets	144.83B	142.74B	149.23B	142.73B	147.33B
Cash, Cash Equivalents and Short-Term Investments	27.90B	24.12B	32.88B	27.94B	21.32B
Total Debt	77.13B	74.18B	79.83B	71.12B	60.39B
Total Liabilities	121.92B	122.49B	128.12B	111.63B	100.11B
Stockholders Equity	12.46B	10.18B	11.28B	21.63B	38.43B
Cash Flow
Free Cash Flow	-4.73B	-4.26B	-5.39B	-3.71B	-14.29B
Operating Cash Flow	911.00M	-547.00M	-1.90B	2.07B	-4.22B
Investing Cash Flow	-5.17B	871.00M	2.74B	-3.60B	-7.54B
Financing Cash Flow	7.30B	-10.74B	2.34B	6.24B	10.27B

Kasai Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 151.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7256, the sentiment is Neutral. The current price of 151 is below the 20-day moving average (MA) of 296.95, below the 50-day MA of 225.82, and above the 200-day MA of 137.96, indicating a neutral trend. The MACD of 15.77 indicates Positive momentum. The RSI at 52.86 is Neutral, neither overbought nor oversold. The STOCH value of 65.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7256.

Kasai Kogyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7247	75 Outperform	¥13.69B	6.74	―	3.90%	-1.72%	168.62%
7218	74 Outperform	¥11.13B	7.10	―	2.91%	-3.24%	-26.11%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7291	60 Neutral	¥8.11B	4.65	―	4.24%	-7.88%	-73.98%
7214	58 Neutral	¥5.09B	2.75	―	4.51%	0.61%	-453.99%
7297	57 Neutral	¥6.44B	3.20	―	3.44%	-7.72%	-311.30%
7256	52 Neutral	¥10.83B	0.59	―	―	-9.54%	21.21%